The U.S. government is considering buying a 10% share of Intel, a major computer chip company. This action would be one of the biggest U.S. government investments in a private business since the 2008 auto industry bailout.
Key Facts
The U.S. government might buy a 10% share in Intel.
Intel is a company that makes computer chips.
This would be one of the largest U.S. government investments in a private business since 2008.
The 2008 reference is to the government bailout of U.S. auto companies.
Amna Nawaz spoke with Peter Harrell from the Carnegie Endowment for Peace about this topic.
Peter Harrell is a former economic advisor in the Biden administration.
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Walmart's second-quarter earnings report showed that more shoppers are choosing Walmart despite economic challenges. However, the company's profits fell short of expectations because of rising inventory costs. Walmart's revenue grew, but its stock price dropped due to lower-than-expected earnings and concerns about future margins.
Key Facts
Walmart's revenue for the second quarter was $177.4 billion, slightly higher than expected.
The company's adjusted earnings per share were 68 cents, below the expected 74 cents.
Walmart's stock fell 4% due to missed earnings expectations.
The retailer's gross margin was 24.5%, not meeting the forecasted 24.9%.
Tariffs have increased Walmart's costs, as goods became more expensive.
Walmart's online sales grew by 25% globally in the second quarter.
Consumers, especially middle- and lower-income households, are changing their shopping habits due to higher prices.
Walmart plans to raise some prices to manage tariff-related costs.
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A UK business leader, Adam Garfunkel, has suggested that companies in the UK stop doing business with companies linked to Israel. He believes businesses should support international law instead.
Key Facts
Adam Garfunkel is a UK business leader.
He suggests UK businesses should not work with companies connected to Israel.
He emphasizes the importance of supporting international law.
The context relates to the situation in Gaza.
Adam Garfunkel's comments focus on ethical business practices.
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Economists are meeting in Jackson Hole, Wyoming, to discuss key issues related to the U.S. Federal Reserve, focusing on topics like interest rates and the Fed's independence from politics. Jerome Powell, the current Fed chair, is expected to speak about the economic outlook and possibly the future of interest rate cuts. This gathering comes amid tensions between the Fed and political leaders in the U.S.
Key Facts
The meeting takes place at the Kansas City Federal Reserve's annual economic symposium in Jackson Hole, Wyoming.
Economists are discussing the main topic, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy."
Jerome Powell, the Fed chair, is giving a speech on the economic outlook and possibly reviewing the monetary policy framework.
Investors are interested in whether the Fed will cut interest rates soon, as the markets predict.
President Trump has criticized the Fed for not lowering interest rates and pressures Fed officials.
Trump has nominated Stephen Miran to the Fed's Board of Governors, aiming for a majority of Trump-appointed members.
The meeting could impact how U.S. economic policies are shaped moving forward.
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McDonald's Japan stopped a toy giveaway that was supposed to start soon. This decision came after a Pokémon toy promotion led to food being wasted and the toys being resold for profit online. McDonald's is now reviewing how it handles these giveaways to prevent similar problems.
Key Facts
McDonald's Japan postponed a toy promotion tied to "One Piece" due to problems from a past Pokémon card giveaway.
The Pokémon card giveaway resulted in people buying a lot of meals just for the cards, causing food waste.
Complaints came in when people saw the Pokémon cards being sold for high prices online.
McDonald's Japan decided to give out toys from earlier promotions instead of the new ones.
Japan's Consumer Affairs Agency advised McDonald's to improve its sales strategy and reduce food waste.
"One Piece" is a well-known comic and animated series in Japan.
McDonald's faced similar reselling issues with other promotions, like the "Chiikawa" series.
McDonald's Japan apologized for the Pokémon card situation and plans to cap meal purchases to prevent reselling.
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The UK's third-largest steelworks is now under government control. This affects around 1,500 workers as the authorities try to find a new owner for the facility.
Key Facts
The steelworks is the third largest in the UK.
It is located in Rotherham and Sheffield.
The company, Speciality Steels UK (SSUK), owed hundreds of millions of pounds.
Insolvency courts granted a winding-up order against SSUK.
The Official Receiver and Teneo, a consultancy firm, are managing the company.
The government will pay workers' wages and other costs for the time being.
A buyer is sought to take over the steelworks.
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The United States and the European Union have reached a trade agreement involving pharmaceuticals and semiconductors. Initially, there was a threat from President Trump to impose high tariffs of up to 250% on these goods, but that has been reduced to 15%. Other parts of the agreement include maintaining a 27.5% tariff on cars until the EU removes tariffs on U.S. industrial goods.
Key Facts
The U.S. initially threatened to impose very high tariffs on EU pharmaceuticals and semiconductors.
Under the new agreement, tariffs on these items will be lowered to 15%.
The deal was first mentioned during Trump's meeting with European Commission President Ursula von der Leyen.
The EU will lower tariffs to zero on all U.S. industrial goods, including some agricultural products.
The 27.5% tariff on European car exports to the U.S. will remain until the EU lifts all tariffs on U.S. goods.
This agreement provides stability and clarity for U.S.-EU trade relations.
Ireland's Deputy Prime Minister welcomed the tariff reduction for pharmaceuticals, important for Irish exports.
The new 15% tariff rate will apply to most European goods starting from 1 September.
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Jerome Powell, the Federal Reserve Chairman, is preparing to give a significant speech at the Jackson Hole meeting. The speech will discuss the economic outlook and the Fed's approach to managing inflation and unemployment. This comes amid pressure from the White House to lower interest rates.
Key Facts
Jerome Powell will give a speech at the Jackson Hole meeting, which is his last as Fed Chairman.
The Federal Reserve is under pressure from the White House to lower interest rates.
Powell's speech will address the economic outlook and the balance between inflation and unemployment.
Investors are hoping for hints about a possible interest rate cut in September.
The Fed cut its benchmark rate by one percentage point last year and has kept rates steady since December.
Inflation is above the Fed's 2% target, while job growth is slowing, complicating rate decisions.
The Fed recently reviewed its long-term interest-rate policy, balancing inflation control and maximum employment goals.
Powell might state that the Fed is keeping options open for future rate decisions.
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Walmart reports that the costs of tariffs are increasing weekly and will continue to do so for the rest of the year. These costs have forced price adjustments on some items, but overall, Walmart says that customer shopping habits have not dramatically changed. Sales in the U.S. have grown, although customers are cautious about large spending due to economic uncertainty.
Key Facts
Walmart's costs from tariffs are increasing weekly.
Some item prices have risen due to tariffs, but many back-to-school items are cheaper this year.
The Trump administration's tariffs affect nearly all imports, raising costs for retailers.
Walmart has seen a rise in higher-income shoppers looking for deals.
Tariffs have not caused major changes in customer shopping habits.
Walmart's U.S. sales increased by 4.6% in the last quarter.
Other retailers like Home Depot have also raised some prices due to higher tariffs.
Companies have avoided major price hikes by stockpiling goods in advance.
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The U.S. and the European Union (EU) announced a partial trade deal that includes a 15% tariff on 70% of goods the EU exports to the U.S. The agreement is not legally binding and leaves out many details, with ongoing talks planned to address areas not yet covered, such as wine, spirits, and steel. The arrangement aims to prevent a trade war by setting lower tariffs than those imposed during the previous U.S. administration.
Key Facts
The trade deal between the U.S. and EU includes a 15% import tax on 70% of EU goods sent to the U.S.
The initial agreement omits areas such as wine, spirits, and steel, with negotiations to continue on these topics.
The document is a political commitment rather than a legally enforceable contract.
U.S. automotive exports to the EU will have a zero tariff, a key provision of the deal.
The trade relationship between the U.S. and EU is the largest in the world, involving $2 trillion in business annually.
The deal seeks to avoid a trade war and maintain lower tariffs than those implemented during President Trump’s tenure.
Ongoing discussions may potentially exclude more goods from the 15% tariffs.
EU officials hope to reduce tariffs on wine and spirits through future negotiations, aiming for a permanent solution.
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Average mortgage rates in the UK have dropped below 5% for both five-year and two-year fixed rate deals. This marks the first decrease to this level since May 2023, offering some relief to borrowers.
Key Facts
The average five-year fixed mortgage rate is now at 4.99%, down from 5%.
The average two-year fixed mortgage rate has dropped to 4.97%.
This decline is the first time rates have been below 5% since former Prime Minister Liz Truss's mini-budget in September 2022.
Moneyfacts reports that lenders are competing more aggressively, offering more options to borrowers.
There are now 7,031 residential mortgage products available, up from 6,992.
900,000 fixed rate mortgages are due to expire in the second half of 2025.
Mortgage rates increased significantly after a fiscal event in 2022, reaching the highest level since the 2008 financial crisis.
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Tesco has increased the price of its meal deal for both Clubcard holders and non-holders. The rise is part of a broader trend of increasing food prices in the UK.
Key Facts
Tesco has raised the meal deal price for Clubcard holders from £3.60 to £3.85.
Non-Clubcard holders will pay £4.25, up from £4.
The price increase is effective from Thursday.
A premium meal deal is now £5.50 for Clubcard users, £6 for others.
Food prices in the UK rose 4.9% over the year leading to July.
Retail costs have risen due to changes like a new packaging tax and increased employment costs.
The British Retail Consortium warns that new taxes could push prices higher.
The Bank of England predicts food price inflation to peak at 5.5% later in the year.
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WHSmith's shares dropped by 38% due to an accounting mistake that overstated profits in North America. The company has adjusted its profit forecasts and is conducting a review to address the error. WHSmith operates mainly as a travel retailer after selling its UK high street division.
Key Facts
WHSmith's shares fell 38% after announcing an accounting error.
The error involved early recording of supplier income, causing profit overstatements.
The company's predicted North American profits dropped from £55 million to £25 million for the year.
WHSmith revised its expected annual pre-tax profits to about £110 million.
The company has asked Deloitte to review the situation.
WHSmith sold its UK high street operation to focus on travel retailing.
Experts say the error is embarrassing and raises concerns about the company's future.
WHSmith stores are now found mainly in places like airports and railway stations.
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The current U.S. job market is experiencing slow job growth, leading many employees to stick with their current jobs in a trend known as "job hugging." This situation is partly due to economic uncertainty and fears about the impact of artificial intelligence (AI) on employment. The trend has allowed employers more leverage in setting working conditions.
Key Facts
Job growth in the U.S. has been slow, with the weakest numbers since 2010 aside from the pandemic period.
In New York City, only 965 private-sector jobs were created in the first half of the year.
Professional and business services employment is declining after previous growth post-pandemic.
Employees are worried about AI potentially replacing their jobs.
Some industries, like consulting, are contracting, leading to fewer job opportunities.
Employers are using the opportunity to regain control over work conditions, such as requiring office attendance.
The unemployment rate remains relatively low outside of federal job cuts.
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Jollibee, a popular fast-food chain in the Philippines, reported that fraudsters altered the results of an online raffle by entering fake names. The company corrected the situation, promised a re-draw, and assured cooperation with a government investigation.
Key Facts
Jollibee is a well-known fast-food chain in the Philippines.
Fraudsters tampered with Jollibee's online raffle results.
Fake names appeared as winners, leading to disbelief among social media users.
Jollibee took action by disqualifying invalid winners and suspending further draws.
The company complied with a government investigation led by the Department of Trade and Industry.
The Department promises to ensure future raffle fairness and transparency.
Jollibee has expanded internationally, with stores in 17 countries.
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In July, the UK government borrowed £1.1 billion, which was less than expected. This was the lowest borrowing amount for the month in three years and is due to higher tax and National Insurance income.
Key Facts
UK government borrowing in July was £1.1 billion.
This borrowing amount decreased by £2.3 billion compared to July of the previous year.
The current July borrowing is the lowest in three years.
The reduction in borrowing was due to strong tax and National Insurance income.
Total borrowing for the first four months of the financial year reached £60 billion.
This total borrowing amount increased by £6.7 billion compared to the same period last year.
The data was reported by the Office for National Statistics (ONS).
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Delta Air Lines and United Airlines are being sued by passengers who say they were charged extra for window seats but ended up next to solid walls with no windows. The lawsuits argue that the airlines do not inform customers about these windowless seats during booking. The legal actions are seeking refunds and damages for many affected passengers.
Key Facts
Passengers are suing Delta and United because they paid for window seats but got seats without windows.
The lawsuits request millions in damages for over a million customers from each airline.
It's claimed that Delta and United do not inform buyers that some seats labeled as "window seats" do not have windows.
The lawsuits were filed by Greenbaum Olbrantz law firm.
Some seats on certain Boeing and Airbus planes lack windows due to the location of air conditioning and other equipment.
The lawsuits say customers might have chosen different seats if they knew they lacked windows.
Other airlines, like American and Alaska Airlines, provide information if a seat does not have a window during booking.
United Airlines has not commented on the lawsuit; Delta has yet to respond.
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Sony is increasing the prices of its PlayStation 5 consoles in the United States by about $50. The decision comes in response to rising costs and concerns over tariffs affecting goods from Japan. Prices for PlayStation 5 accessories will remain the same.
Key Facts
Sony is raising PlayStation 5 prices in the U.S. by about $50.
The new price for the base model will be $499.99.
Sony cites rising costs and tariffs as reasons for the price increase.
Tariffs were introduced by former U.S. President Donald Trump.
The price changes will start on August 21.
Prices for PlayStation 5 accessories will not change.
Similar price hikes were made in the UK and Europe due to inflation and exchange rates.
Other gaming companies like Nintendo and Microsoft have also raised prices recently.
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Denmark's state postal service, PostNord, will stop delivering letters at the end of the year due to a significant drop in demand, mostly because of digital communication. The company will lay off about one-third of its workforce but plans to expand its parcel delivery services, which are profitable.
Key Facts
PostNord is ending letter deliveries due to a decline in letter volumes.
The decline is mainly due to digitalization, with more communication happening online.
PostNord will cut 2,200 jobs but create 700 new positions in parcel delivery.
Danish people now receive an average of one letter per month.
Denmark ranks among the most digitalized countries, with most services available online.
The cost of sending letters in Denmark is high, contributing to the decline in letter usage.
Since 2000, the number of letters handled by PostNord decreased by over 90%.
1,500 red post boxes will be removed from Danish streets as part of the changes.
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U.S. Senator Bernie Sanders supports a plan by President Donald Trump to convert government grants for chipmakers like Intel into ownership stakes. This comes as part of the CHIPS and Science Act aimed at boosting domestic semiconductor production. Both Sanders and Trump agree that taxpayers should receive returns on investments in profitable companies.
Key Facts
President Trump plans to change U.S. grants to chipmakers, such as Intel, into government stakes in these companies.
Senator Bernie Sanders supports this plan, stating taxpayers deserve returns if the companies profit.
The grants are part of the 2022 CHIPS and Science Act, which encourages chip production in the U.S.
Commerce Secretary Howard Lutnick is considering how the government can take equity stakes in Intel and others.
Sanders had previously suggested an amendment to the CHIPS Act for government equity in companies receiving grants.
The plan aligns Sanders and Trump, showing a shift towards state intervention in the economy.
Earlier, President Trump allowed AI chip sales to China, with the U.S. getting a percentage of the revenue.
Intel CEO Lip-Bu Tan faced national security concerns due to past investments in Chinese tech companies.
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